Around the Traps ... with THE FERRET 07:51, Monday, 21 March 2005
Sydney - Monday - March 21: (RWE Australian Business News) - ***************************
The market's newest iron ore darling, MIDWEST (MIS), made a lively comeback to the trading lists on Friday.
After a five-day trading halt and suspension at 63c the shares went as low as 50c and as high as 85c before closing at 77c, up 14c.
It was a win-win for participants in a 37c placement and the shareholders who have been offered stock at 37c in a share purchase plan.
They have quickly doubled their money.
The only unhappy punters are the poor mugs who sold ahead of the trading halt, as the price climbed relentlessly from 38c to 63c.
They probably feel dudded.
*****
Mining investors dread breakdowns and stoppages.
On Friday ZINIFEX (ZFX) announcd that electrical failure in the SAG (semiautogenous grinding) mill at Century Mine would cause the loss of 11 to 18 days production.
The full financial impact will be revealed in the middle of this week.
Sellers didn't wait.
They lopped the shares 13c to $3.04 on Friday, a 4 per cent fall, which roughly equates to the percentage of year's days lost in the stoppage.
It may have burst the bubble for the stock, which had risen from $1.78 on listing day in April last year to recently hit a record $3.48.
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WEBSPY (WSY) is not a busy stock.
In fact, sometimes it goes for days on end without registering a sale.
So when it bursts into action on rising prices it attracts notice.
Hopefully it attracts the notice of the ASX as well.
It didn't trade on Monday and Tuesday, but rose 1.3c to 2.5c on Wednesday (you don't often get 100 per cent-plus price rises), rose 1.1c to 3.6c on Thursday and 2.1c to as high as 5.7c on Friday.
It later came off the top at a rate of knots to close the week at 3.5c.
There's been nothing from the company since the announcement of a half-year loss of $552,000 on February 28.
*****
Bold expansion moves can be exciting for investors.
But MACQUARIE COUNTRYWIDE's (MCW) $3.5 billion shopping spree in the US has not been a happy experience for its unitholders.
The price of the stock has slumped from $2.02 to as low as $1.82 (on Friday) since the announcement.
Kylie Rampa, CEO of the trust's manager, said: "CountryWide's focus will be on integrating the First Washington Portfolio and delivering to our investors the benefits of these high quality assets with their grocer strength and attractive demographics."
No doubt unitholders are feeling happier already.
*****
When the OECD said Australia was highly taxed it was all over Parliament, the front pages of the papers, on the air waves and on the TV screens for days on end.
When the OECD admitted it got it wrong, well, it was on the bottom of page eight or a lightning quick read between items on TV.
Funny that.
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CALLIDEN (CIX), the former ReAC, reports that APRA has approved its new general insurance licence and confirmed its re-entry into the general insurance market.
CEO Nick Kirk said that working with APRA on the licence approval process had been a positive experience and that Calliden had adopted best practice business processes in setting up the business.
"The licence approval process was quite rightly intense and rigorous, but it has provided us with a strong foundation on which to grow our business and we will continue to demonstrate our disciplined approach through our operations," Mr Kirk said.
Isn't that nice and courteous?
But after the HIH saga APRA had better be intense and rigorous.
Calliden fell 1c to 58c on Friday.
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